Government Benefits


Social Security

Social Security Cost-of-living adjustment (COLA) 2011 2012
For Social Security and Supplemental Security Income (SSI) beneficiaries 0.00% 3.60%
Tax rate–employee 2011 2012
FICA tax — Employee 1 5.65% 7.65%
Social Security (OASDI) portion of tax 1) 4.20% 6.20%
Medicare (HI) portion of tax 1.45% 1.45%
Self-Employed 13.30% 15.30%
Social Security (OASDI) portion of tax 1 10.40% 12.40%
Medicare (HI) portion of tax 2.90% 2.90%
Tax rate–self-employed 2011 2012
Self-Employed 13.30% 15.30%
Social Security (OASDI) portion of tax 1 10.40% 12.40%
Medicare (HI) portion of tax 2.90% 2.90%

1 The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included a 2% reduction in the Social Security (OASDI) portion of FICA tax for 2011.

Maximum taxable earnings 2011 2012
Social Security (OASDI only) $106,800 $110,100
Medicare (HI only) No limit No limit
Quarter of coverage 2011 2012
Earnings required $1,120 $1,130
Retirement earnings test–exempt amounts–Under full retirement age–Benefits reduced by $1 for each $2 earned above: 2011 2012
Yearly figure $14,160 $14,640
Monthly figure $1,180 $1,220
Retirement earnings test–exempt amounts–Year individual reaches full retirement age–Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age): 2011 2012
Yearly figure $37,680 $38,880
Monthly figure $3,140 $3,240
Retirement earnings test–exempt amounts–Beginning the month individual attains full retirement age 2011 2012
No limit on earnings No limit on earnings
Social Security disability thresholds 2011 2012
Substantial gainful activity (SGA): for the sighted (monthly figure) $1,000 $1,010
Substantial gainful activity: for the blind (monthly figure) $1,640 $1,690
Trial work period (TWP) (monthly figure) $720 $720
SSI federal payment standard 2011 2012
Individual (monthly figure) $674 $698
Couple (monthly figure) $1,011 $1,048
SSI resource limits 2011 2012
Individual $2,000 $2,000
Couple $3,000 $3,000
SSI student exclusion limits 2011 2012
Monthly limit $1,640 $1,700
Annual limit $6,600 $6,840
Maximum Social Security benefit 2011 2012
Worker retiring at full retirement age (monthly figure) $2,366 $2,513
Formula for Monthly Primary Insurance Amount (PIA) 2011 2012
(90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y) X=$749 Y=$4,517 X=$767 Y=$4,624

Medicare

Medicare monthly premium amounts–Part A (hospital insurance) premium 2011 2012
Individuals with 40 or more quarters of Medicare-covered employment $0 $0
Individuals with 30 to 39 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insurance $248 $248
Individuals with less than 30 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insurance $450 $451
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–For beneficiaries who file an individual income tax return with income that is: 2011 2012
Less than or equal to $85,000 $96.40 $110.50 or $115.402 $99.90
$85,001 – $107,000 $161.50 $139.90
$107,001 – $160,000 $230.70 $199.80
$160,001 – $214,000 $299.90 $259.70
Greater than $214,000 $369.10 $319.70

 

Medicare monthly premium amounts–Part B (medical insurance) monthly premium–For beneficiaries who file a joint income tax return with income that is: 2011 2012
Less than or equal to $170,000 $96.40 $110.50 or $115.40 2 $99.90
$170,001 – $214,000 $161.50 $139.90
$214,001 – $320,000 $230.70 $199.80
$320,001 – $428,000 $299.90 $259.70
Greater than $428,000 $369.10 $319.70
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–For beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is: 2011 2012
Less than or equal to $85,000 $96.40 $110.50 or $115.402 $99.90
$85,001 – $129,000 $299.90 $259.70
Greater than $129,000 $369.10 $369.10

2 Most beneficiaries paid the same $96.40 or $110.50 premium in 2011 as they did in 2010. However, new enrollees or beneficiaries who did not have their premium withheld paid $115.40.

Original Medicare plan deductible and coinsurance amounts–Part A (hospital insurance) 2011 2012
Deductible per benefit period $1,132 $1,156
Coinsurance per day for 61st to 90th day of each benefit period $283 $289
Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days–nonrenewable) $566 $578
Original Medicare plan deductible and coinsurance amounts 2011 2012
Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period $141.50 $144.50
Original Medicare plan deductible and coinsurance amounts–Part B (medical insurance) annual deductible 2011 2012
Individual pays 20 percent of the Medicare-approved amount for services after deductible is met $162 $140

Medicaid

2011 2012
Monthly income threshold for income-cap states (“300 percent cap limit”) $2,022 $2,094
Monthly maintenance needs allowance for at-home spouse 2011 2012
Minimum 3 $1,822 $1,838.75
Maximum $2,739 $2,841
Spousal resource allowance 2011 2012
Minimum $21,912 $22,278
Maximum $109,560 $113,640

3 Amounts listed actually effective as of July of prior year; different amounts apply to Alaska and Hawaii.

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